Car Finance Types oans. Low fixed or variable interest rate because finance is secured against the car. Flexible terms for time and repayments. 2. Commercial Hire Purchase. The financier buys the car and then hires it to the consumer over a set period. Can be for individuals and businesses. Monthly payments generally pay out the entire loan in the set period and the vehicle is transferred to the motorists when all payments are complete. Mostly replaced by chattel mortgages.

Car finance explained. Car finance might seem daunting, but in reality it's just a simple two-stage process. The first stage is to decide on the type of deal you want: loan, lease, hire purchase, or dealer finance.

Car finance made simple. Comparing Finance Types. With so many different offers, fees and acronyms it's hard to know if you are making the right choice when buying a car.